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visit was up strongly (up 5.1 percent), which, when combined Increase in Revenue per Employee. This ratio measures
with a similar percentage increase in average ticket prices (up the effectiveness with which resorts can generate reve-
5.9 percent), resulted in a similar ticket yield ratio. nue with the employee base, and allows for a comparison
between resorts of different size and in different regions
Increase in “Health.” Health (debt to cash flow) is a rough mea- of the country.
sure of the number of years that would be required, in theory, With gross revenue levels up and only a slight increase
at current levels of cash flow to retire current levels of long-term in the number of total employees, revenue per employee was
and subordinated debt. In 2015/16, a significant reduction in up 8 percent, at $37,778. This result indicates that ski areas
long-term and subordinated debt was recorded, resulting in a were able to generate a greater level of top-line revenue with
decrease in Health to 1.0 from 1.9 the year before. Therefore, a similar number of employees.
the industry would require only about a year to retire the cur-
rent level of long-term debt at current cash flow levels. The results of the Economic Analysis reveal a relatively
Significant variability is seen in Health by region, typically strong overall, but regionally variable, business operat-
higher in regions with higher levels of long-term debt and/ ing environment during the 2015/16 season. Nationally,
or lower levels of cash flow; the lowest Health ratio is in the total revenue and revenue per visit were up; as well, rev-
Rocky Mountains (0.3) and the highest in the Southeast (8.1). enue in most major departments was up. Growth in rev-
enue outpaced the increases in expenses, resulting in
Increase in Operating Profit on Gross Fixed Assets. higher profit margins. Critical ratios were all more posi-
Nationally, operating profit on GFA increased to 15 per- tive than a year ago.
cent from 13.7 percent the year prior (operating profit grew These national trends are encouraging, and the regional
by 19.7 percent and gross fixed assets increased by a smaller and size breakouts provide even greater level of detail on the
9.5 percent, resulting in an increase in the return on assets economic health of the industry. These segmentations and
ratio). Operating profit return on GFA was up in the three specific benchmarks will be provided in the final report of
western regions and down in the three eastern regions. the 2015/16 NSAA Economic Analysis.

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WINTER 2017 | NSAA JOURNAL | 31